A dependable trade finance company can help keep your brand ahead of your competitors. When you work with an expert in trade finance, you will have access to additional capital that will enable you to keep items in stock for your valued customers. Your buyers will similarly have greater cash reserves on hand since this type of financing often allows them to set up longer payment terms with their suppliers. International trade finance companies can benefit businesses both large and small by equipping them with the cash flow to maintain a steady inventory and profit.
What is Trade Finance?
Trade finance offers financial support to keep international trade flowing as it should. It is there to reduce the risks involved in international trade transactions.
By using creative and useful tools available with trade finance, such as supply chain financing and export factoring, industry types that are heavily involved in exporting and importing goods can more effectively navigate international trade.
What Risks are Involved with International Trade?
Throughout the international trade process, companies face several risk factors. These can include:
- Payment Risk – Companies face the risk of whether the exporter will receive payment on time and if the importer will receive the products they requested.
- Country Risk – Many risks are possible when dealing with shipping products to foreign countries. These risks can include the exchange rate, sovereign risks, and political risks. Sometimes a company may not want to export goods to a country due to a political issue, a failing economy or the lack of legal structures in the area.
- Corporate Risk – These risks can be harmful to both the exporter and the importer. Issues such as a poor credit rating or a long history of nonpayment could pose a problem.
What Types of Businesses Benefit the Most from International Trade Finance?
Most industry types that deal in the exporting or importing process can benefit significantly from trade finance. However, there are four types of businesses that can specifically benefit from the services offered by trade finance companies. The four main types include:
- Established businesses looking for continued growth but need financial assistance.
- Businesses selling internationally, such as large-scale import and export companies.
- Financially-stressed companies such as those who are enduring a difficult time or just starting up.
- Businesses that need a consistent income while the demand for their product fluctuates. The uncertainty of funds is typical for certain types of industries and the services offered by trade finance companies can help them through the droughts.
Why is the History of a Trade Finance Company Important?
As a business owner, you don’t want to put your company at risk by working with just any finance company without learning about their background. Failing to learn more about a company’s past could place your own company, as well as your distributors, at risk.
A trade finance company that doesn’t have corporate information readily available for you to view may not be in your best interest. You need a reliable trade finance provider to help you remain ahead of the competition. You want a team of experts who have the experience required to get the job done right, the first time, with few if any issues along the way.
Working with an international trade finance team who has a long list of successful transactions is a sound option for new and old businesses alike. These companies have the knowledge and intelligence to help your brand overcome any supply and demand obstacle. They can make sure your customers get the products they need in a safe and timely manner.
How Tradewind Finance Can Help Your Business Succeed
Take the time to investigate the trade finance company you are considering doing business with. Tradewind Finance is a leading international trade finance company that has a proven history and track record of providing funding to clients worldwide. They will help ensure your company will have the financial freedom to expand when needed, pay for goods and services to keep the business cycle flowing, and will protect your company against the risks of international trade. They help both large corporations and small businesses alike with import and export financial issues that arise in global trade.